Goldman Sachs: Did It See The Darkness Coming?

By Dave Kansas

EPA

When Goldman Sachs reported second-quarter results, the Street seemed surprised that the mighty trading giant had stumbled in the game of risk.

But today, one wonders if it stumbled or was, perhaps, just a bit early in its insight. In an ocean of red, Goldman Sachs is trading modestly higher today, gaining about 0.3% to $131.55. All of its financial rivals are trading lower, along with the broader market.

Let’s go back and look at what Goldman said when it reported on July 19. Chiefly, it had sharply reduced its risk-taking. Its Value at Risk measure dropped to $101 million, down 26% from the year-ago quarter and its lowest VaR since the 2006 third quarter.

That reduction in risk looks pretty shrewd as the Dow Jones Industrial Average chases a ninth-straight loss and turmoil grips the European markets.

Goldman’s shares are up from $128.49, which is where it closed after reporting disappointing earnings.

Morgan Stanley, which shot higher after it reported surprisingly strong results on July 21, is now trading at $20.88, below its pre-report level. J.P. Morgan has followed a similar trajectory.

Comments (3 of 3)

lets ask the Axis of Devil - Bush, Cheney and Rumsfeld.
and their Axis of blunder has ruined our country - Iraq/Afghan War + Medicare Part D + Tax cuts for Rich
Afghan front was correct since those bastards initiated it but Drones would have been much cheaper and effective.

Back to the mkt - this is new normal like Japan. its stock mkt is still below its late 1980s' level!!!!!!!!!!!

1:38 pm August 3, 2011

Adam wrote :

I wonder if being affiliated with the Devil allows you to see the future? Somebody call Dick Cheney and ask him.

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